Bangkok--Jun 17--PTT H.E. Mr. Viset Choopiban, Minister of Energy, Y. Bhg. Tan Sri Abu Talib Othman, and Mr. Sivavong Changkasiri, Co-Chairmen of the Malaysia-Thailand Joint Authority (MTJA), today jointly presided over the gas sale agreement (GSA) signing ceremony between PTT and MTJA and its gas sellers, governing Blocks B-17, C-19 & B-17-01 of the Malaysia-Thailand Joint Development Area (JDA). The signatory sellers consisted of PC JDA Limited (PCJDAL), an affiliate of Petronas of Malaysia, and PTTEP International Limited, a subsidiary of PTT Exploration and Production Plc. In Thailand the gas will satisfy current domestic demand, which has stepped up with the expanding economy, as well as future demand. Mr. Prasert Bunsumpun, PTT Plc President, signed the accord as the buyer whereas Mr. Zarei Mohamed, Chief Executive Officer of MTJA, Mr. Mohamad Johari Bin Dasri, Director of PCJDAL, and Mr. Maroot Mrigadat, PTTEP President, represented the sellers. Minister Viset remarked, “Thailand and Malaysia share a policy of collaboration to develop gas resources in the overlapping claim area, thereby maximizing the use of their indigenous resources. Ever since the inception of MTJA in 1979, both countries have made continuing efforts to develop this gas-prone area and reached the first milestone in 1999 with the signing of a GSA governing Block A18 by PTT and Petronas on the joint purchase of natural gas from JDA. Today’s signing for the purchase of natural gas from Block B17 & C19 and B17-01 not only completes the initial fulfillment of gas development efforts in JDA, but also guarantees future cooperation between the two nations. “Due to the prevailing energy crisis resulting in escalating oil prices, the government promotes the use of indigenous energy in power generation, industries, and the transport sector. Compared with other fuels, natural gas holds a distinct advantage in its clean burning, environmental friendliness, and cost competitiveness,” said the minister, adding, “Today’s signing helps PTT fulfill its role of enhancing the security of energy supply to sustain Thai economic growth. PTT has constantly replenished Thailand’s energy supply, which is important because it implies a maximized use of our own resources, and second, it lessens foreign-exchange payment through lower oil import bills.” In addition, Thailand will directly gain benefits from its investment JDA’s Block A18 and B17 in terms of petroleum royalty fee, profit sharing from petroleum sale, and petroleum income tax totally worth about Bt320 billion (or about US$ 8 billion). The PTT President said, “Based on the initial gas reserves of 1.95 trillion cubic feet (Tcf), PTT will be taking delivery of 270 million standard cubic feet per day (MMSCFD) for the first 10 of the total 16 years starting middle of 2008 and 250 MMSCFD for the remaining 6 years. Between 2010 and 2012, this volume could rise to 470 MMSCFD, pending gas reserves confirmation in which suppliers can report the estimation on natural gas reserve volume in late 2007. Under the agreement, PTT will derive a 5-20% gas price rebate varying with the cumulative purchase volume; the 20% rebate occurs once 1.8 Tcf has been purchased. As for the Block B17 gas price on average, it is comparable to the average gas price in the Gulf of Thailand; over 20 years the total value of gas sold will approximate 370,000 million baht (assuming $30/barrel fuel oil price at 40 baht/US dollar). The GSA Signing Ceremonies of JDA were already held twice. First was the GSA governing Block A18 of the JDA held on October 30, 1999 which PTT and Petronas were the co-purchasers of 390 MMSCFD of natural gas, and second was the Phase II purchase (2012 — 2013) of natural gas at 400 MMSCFD. Total purchase of natural gas from Block A18 is 790 MMSCFD which separated into the Phase I purchase by Petronas and the Phase II purchase by PTT. For the additional purchase in Phase III, the contract volume will be not more than 400 MMSCFD, depending on the volume of natural gas reserved. The production is expected to be ready between 2553 — 2555. PTT and Petronas will further discuss for the allocation of gas to be taken by each party. “PTT makes it a policy to secure adequate and timely supply of natural gas at suitable prices. PTT is today accelerating completion of the Third Gas Pipeline Project under Gas Pipeline Master Plan III (amended, 2001-2011) to get more gas to more users,” said the PTT President. “The Offshore Third Gas Pipeline, with a 42-inch diameter, is capable of transmitting 1,900 MMSCFD. Measured from one end (Rayong) to the other (JDA), the route is 730 km long and also accommodates gas from other sources, e.g., the gas fields in Navamindra Area, JDA Blocks A18 and B17. It is expected that this pipeline project will extend to gas fields in JDA Block A18 by the end of 2006 and Block B17 in early 2008,” he added. For additional information, contact: Public Relations Section, Gas Business Group, PTT Plc Tel. 0-2537-3217 Fax 0-2537-3211 End.